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STWA in Proposal Talks With Multiple Companies

AOT™ Enhanced Oil Transportation System Being Evaluated for Its Ability to Unlock Overloaded Pipeline Networks, Leading to U.S. Energy Independence, and Efficiency Gains for Global Operators in Other Countries

AOT(TM) 2.0 4-Pack skid-mounted array system as designed for a 600,000 barrel per day commercial crude …

SANTA BARBARA, CA--(Marketwire - Oct 2, 2012) - STWA, Inc. (OTCBB: ZERO) ("STWA" or the "Company"), a developer of applied solutions for oil and fuel delivery systems in the multi-billion dollar oil pipeline and diesel engine markets, today announced that it has begun multiple proposals and feasibility studies in the marketplace and is currently collaborating with several pipeline operators regarding engineering, design, points of installation and cost benefit analysis information. STWA is currently in talks with companies around the world who have expressed an interest in STWA's AOT™ product to significantly alleviate their pipeline transportation problems.

International and domestic pipeline companies who are currently under strict NDA with STWA have agreed to send oil samples to Temple University for lab testing, allowing STWA to produce feasibility and case study analysis so as to determine the effect of AOT™ flow assurance technology on an operating commercial pipeline as well as proposed future pipeline development. Temple University is in receipt of, and is currently receiving additional, crude oil samples for testing due to STWA's outreach into the petroleum industry regarding the benefits of an installed AOT™ system.

The companies working with STWA are interested in the new AOT™ Enhanced Oil Transportation Systems because the technology holds benefits to both pipeline operators and oil producers alike. The AOT™ systems allow the pipeline to reduce the friction drag within the pipeline, which simultaneously increases the maximum flow rate and reduces pipeline shutdown times and energy consumption per day. AOT™ is like adding synthetic pipe capacity, without the problems and permits required for adding new pipe.

Oil transportation companies are actively seeking a way to alleviate the critical shortage in pipeline capacity, in particular the United States as it moves towards energy-independence. As critical pipeline capacity shortages become an even greater problem, this new technology is gaining attention from both industry and politicians alike as a way to assist the USA in meeting its goals of energy independence. STWA is currently under mutual NDA/NCA agreements and in discussions with multiple companies throughout the USA and abroad to evaluate AOT™ for pilot programs and adoption throughout their pipeline networks.

Montana State Senator Ryan Zinke commented, "I am excited about the prospect of rapidly moving towards energy independence in North America. By increasing efficiency and making it possible to move more product through existing pipelines, STWA's AOT™ Enhanced Oil Transport technology will be instrumental in reaching that goal." Senator Zinke is an outspoken supporter of domestic oil production, the need for America's energy independence, and the opportunity for AOT™'s role in achieving these goals.

"It is clear from the results of U.S. Department of energy testing that STWA's AOT™ technology is a winner," Zinke added. "AOT™ is a game changer in the oil pipeline industry. STWA's AOT™ technology is a win-win for the sectors of oil exploration, pipeline transportation, and refining. Anytime you can increase pipeline capability and efficiency without using costly additives or diluents, everyone benefits."

Oil and pipeline industry operators interested in implementing AOT™ on their pipelines are invited to contact STWA through the company's website: (http://www.stwa.com).

About AOT™ Enhanced Oil Transport Systems:

The AOT™ Enhanced Oil Transport System is designed to be installed to existing and new build pipelines anywhere in the world. The purpose behind the system is to provide a way for the pipeline operator to instantly reduce their operational expenses (OPEX), while allowing the pipeline operator's customers to increase the number of barrels they can move through that pipeline each day.

STWA's new Enhanced Oil Transport System, (known as AOT™) is being evaluated by both pipeline and production companies as a turn-key solution to unlocking the maximum flow rates currently choked by the lack of pipeline carrying capacity.

The AOT™ Enhanced Oil Transport System is designed to be installed to the pipeline every 50-100 miles, and require multiple units operating side-by-side to accommodate any commercial flow rate or pressure. For example, one single 2,000 mile 36" pipeline operating at 1,300 psi would require six 5,000 gallon per minute 1,500psi AOT™ units to be installed every 50 miles along the pipeline, (equaling 240 installed units in a single order).

AOT™ has been independently verified and tested by the United States Department of Energy, Temple University, The U.S. National Institute of Standards and Technology, and China Petroleum Pipeline Bureau. Each of the studies and tests have independently confirmed the efficacy of AOT™ for the reduction of crude oil viscosity and are available on the Company's website.

About STWA, Inc. STWA, Inc. develops and commercializes energy efficiency technologies that assist in meeting increasing global energy demands, improving the economics of oil extraction and transport, and reducing greenhouse gas emissions. The Company's intellectual property portfolio includes 24 domestic and international patents and patents pending, which have been developed in conjunction with and exclusively licensed from Temple University. STWA's technologies include Applied Oil Technology™ (AOT™) which is designed to improve oil flow through pipelines. AOT™ has been proven in U.S. Department of Energy tests to increase the energy efficiency of oil pipeline pump stations. ELEKTRA™ improves diesel engine efficiency for industrial diesel engines, as well as diesel-powered trucks, trains, marine vessels, military fleets and jet turbines. More information including a company Fact Sheet, logos and media articles are available at: http://www.stwa.com.

Safe Harbor Statement This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.